The Accelerated Crash Course: Why The Next 20 Years Will Be Completely Unlike The Last 20

Let’s pull back for a moment and look at the Really Big Picture:
We’re facing a future in which the economic growth the world has enjoyed over the past century can no longer continue.
Massive changes to our way of life are in store. No matter where each of us lives.

As the MUCH WATCH video update to the original Crash Course (viewed by over 15 million people) from our friends at Peak Prosperity shows, 
The Next 20 Years Will Be Completely Unlike the Last 20: [Read more...]

Jim Rickards: The Fed Built a 5 ft Sea Wall, & Here Comes a 40 ft Tsunami!

Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

The next crisis is going to be bigger than the Fed.   It is like they build a five foot sea wall and here comes a forty foot tsunami. There is only one clean balance sheet left in the world and that is the IMF. So the only way you are only going to reliquify the world in the next liquidity crisis is by the IMF printing their world money, these Special Drawing Rights or SDRs, and that is going to be the end of the dollar as a global reserve currency. 
The problem with the US is that the Treasury and the White House want a weak dollar.
I mean, what good does it do you when your own country wants to trash the currency? What happened to the strong dollar policy? It’s over now and we’re in the currency wars. That is going to lead to a collapse and ultimately we are going to see either gold or the SDRs the new store of value on a worldwide basis. 

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Alasdair Macleod: China’s Demand For Gold Has Trapped The West’s Central Banks

china bank runIn the rest of the world and particularly Asia, people do not think like we do. As far as they’re concerned, gold is the only long term asset worth holdingIt is the family pension fund… the financial press in the West, the mainstream media, basically rely for their information on analysts in the bullion banks. And the bullion banks are always short… Now whether the West is right or wrong is not the point. The point is there are 4 billion people in Asia who have got a very old-fashioned view of gold, and they have become wealthy over the last twenty years. And their view is likely to prevail against the <1 billion of us in North America and Western Europe. I mean it really is as simple as that. It’s not a question of Austrian economics, or Keynesian, or whatever. We’re outnumbered. [Read more...]

The Screaming Fundamentals For Owning Gold

screaming fundamentalsChris Martenson has prepared for SD readers his mammoth annual report on the fundamental reasons for owning gold. The plethora of systemic risks that make gold a wise investment continue to expand, as does the shocking imbalance between increasing demand and tightening supply.
The punch line is this: Gold (and silver) is not in bubble territory, and its largest gains remain yet to be realized; especially if current monetary, fiscal, and fundamental supply-and-demand trends remain in play.
We approaching a moment in the great transfer of wealth where the dividing line between safety and ruin may quite simply come down to this one question: Got gold?

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Chris Martenson: Years of money pumping will end in equity rout

Chris MartensonOur lead story: JP Morgan Chase, the largest bank in the US by assets is reducing its headcount for 2014. The bank announced the changes, saying that creating a business model that can deal with new regulation is cutting into the firm’s profits. JP Morgan said it expects its total headcount to fall by 5,000 to 260,000 people. But JP Morgan is confident that it can win in this new environment… by replacing humans with machines. Erin explains.
Then we welcome Chris Martenson of Peakprosperity.com to give his thoughts on the Federal Reserve and the weak fundamentals of the US economy. In the first segment, Martenson discusses the effect of the huge flood of liquidity created by the Fed on the market. He also explains why bond prices can go up as a result of the Fed’s quantitative easing. After the break, Martenson describes why quantitative easing has helped equity prices but hasn’t helped the underlying economy, and talks about what is happening with inflation in the economy. [Read more...]

James Turk: We’re Living Within A Money Bubble of Epic Proportion

BubbleIn this MUST LISTEN interview with Peak Prosperity’s Chris Martenson, James Turk discusses why he believes the time we live in now will be studied by future historians for generations to come. Just as we today marvel at the collective madness that resulted in the South Sea and Dutch tulip manias, our age will be known as the era when society lost sight of what money really is.
And as result, the wrong kinds of wealth — today, that’s mostly financial assets — are valued and pursued. And just like those bubbles from centuries ago, when the current asset boom goes bust, the value of paper wealth will vaporize. [Read more...]

Chris Martenson on Why The Fed Won’t Be Able to Get Off the Runaway QE Train

trainIn this excellent interview with RT’s Bob English at the Casey Research Summit, Chris Martenson explains why The Fed will have a harder time giving up its QE habit than a coke addict:
“A lot of what we hear is the Fed’s exit strategy … what most people don’t know is that this thing doesn’t work in reverse very well at all
.”
Martenson’s full interview is below:
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Chris Martenson: The Fed Can Only Fail

end badlyChris Martenson offers the inescapable math showing why the Fed will have to destroy the value of the dollar in its efforts to keep the credit growth our economic system so desperately needs continuing.
As Chris warns: “The Fed is beholden to a broken system, not anything noble”.
The likely result of all this? Quite possibly one of the biggest wealth transfers in human history: [Read more...]

Alasdair Macleod On Why a Hyperinflationary Currency Crisis is Dead Ahead

silver precipiceGoing from 1960 to the month before the Lehman crisis in 2008, the average exponential growth rate of global fiat currency was around about 5.9%, year in/year out. It followed that track very closely. Then of course we had TARP and all of the rest of it. And then we had QE. And guess what? The level of fiat-money quantity is now over 60% above that long-term trend line. Now, if we stand back unemotionally and look at that chart, we would say that this is monetary hyperinflation.
Here we have this situation now where the Central Bank, the Fed, is having to produce money to finance the government deficit. It’s having to produce money to keep interest rates down so that the banks don’t have balance-sheet problems. And if it slows down in that production of money, and even if it doesn’t increase the rate of the production of that money, then our world is going to come to a rather nasty halt.
It looks like not only are we in a debt trap, but we are in a hyperinflationary trap. [Read more...]

Chris Martenson: The Periphery is Failing

For years we’ve preached the From the Outside In principle of markets: When trouble starts, it nearly always does so out in the weaker periphery before creeping towards the core.
We saw this in the run-up to the housing bubble collapse, as sub-prime mortgages gave way before prime loans, and in Europe, as smaller economies like Greece, Ireland, and Cyprus have fallen first and hardest (so far).  We see this today in accelerating food stamp use among poorer U.S. households.  In each case, the weaker economic parties give way first before being followed, over time, by the stronger ones.
Using this framework, we can often get several weeks to several months of advance notice before trouble erupts in the next ring closer to the center.
Which makes today notable, as we’re receiving a number of new warning signs.  The periphery is giving way.
The next big economic dislocation might be only weeks away.
[Read more...]

Why We All Lose If the Fed Wins

© Rangizzz | Dreamstime.com

So let’s pretend for the moment that the Federal Reserve gets everything it has stated it wants.  And even further: that Washington, D.C. gets everything it wants, too.
The credit markets are repaired, and massive new loan growth flows out the door.  Loans are made to businesses that hire gobs of new people.  Consumers borrow and borrow some more to go to school and buy homes, cars, and gadgets.  Inflation remains low and job growth explodes.  Tax receipts climb and the deficit falls.  The stock market goes higher and higher, gold falls and then falls some more, as confidence in the system, its masters, and its institutions grows.
The Fed wins and D.C. wins.   But in reality, we all lose.
It’s all just a matter of timing. [Read more...]

Alasdair Macleod: Europe is a Hot Mess

It’s almost August, the month everyone in Europe takes off on holiday to forget their troubles. This year may be different, though, as not only can many not afford a vacation, but Europe’s troubles loom so large that forgetting them won’t be easy…
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Chris Martenson: Bankers Own the World

© Darien Sánchez | Dreamstime.com

Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take away from them the power to create money, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.

~ Josiah Stamp – Bank of England Chairman, 1920s

It really should not be any surprise that banks, in particular – with their extraordinary power to lend money out of thin air (that’s what ‘fractional reserve’ allows) and their unlimited-duration corporate lives – are able over time to accumulate, accumulate some more, and finally end up owning everything.
While we’re not quite there yet, we are well on the way.
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Nick Barisheff: The Case for (Much) Higher Gold Prices

beach ballThis interview was recorded three weeks ago. We’ve been unsure of how well an interview about “$10,000 gold” would be received while the yellow metal experiences its worst quarter, price-wise, in history.
But rather than sit on it any longer, we’re releasing it now and will trust our readers to look past the current price of gold and focus on the long term macro arguments Nick presents. Nick Barisheff, CEO of Bullion Management Group recently published the provocatively-titled book: $10,000 Gold: Why Gold’s Inevitable Rise Is the Investor’s Safe Haven.
In this excellent interview, Chris Martenson sits down with Nick to learn the math behind this forecast. [Read more...]

Market Crash Warning: Everything is Being Sold!

house-of-cardsGlobal financial markets are now in a very perilous state, and there is a much higher than normal chance of a crash. Bernanke’s recent statement revealed just how large a role speculation had played in the prices of nearly everything, and now there is a mad dash for cash taking place all over the world.
Collectively, the move away from commodities, bonds, and equities in all markets globally tells us that there’s nowhere to hide and that this is a 2008-style dash for cash. Everything is being sold, as it must, to meet margin calls, pay down leverage, and get out of positions; all are signs of the end of a speculative phase.
It’s time to consider that we are entering the next phase of our date with destiny. [Read more...]